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MOFCOM announcement No 28 of 2014 on preliminary ruling of anti-dumping against imports of tertiary butylhydroquinone

Updated: Apr 30,2014 11:45 AM     english.mofcom.gov.cn

In accordance with the provisions of the Regulations of the People’s Republic of China on Anti-dumping (hereinafter referred to as the “Anti-dumping Regulations”), on August 22, 2013, the Ministry of Commerce (hereinafter referred to as the “Investigation Authority”) issued an annual announcement No 57 of 2013, deciding to initiate anti-dumping investigations into the imports of tertiary butylhydroquinone originated in India (hereinafter referred to as the “Product under Investigation”), which is listed under tariff No 29072990 in the Customs Import and Export Tariff of the People’s Republic of China. Products other than tertiary butylhydroquinone that are included under the tariff numbers above are not covered in the range of investigation.

The Investigation Authority has implemented investigations into the existence of dumping and dumping margin and the injury to the tertiary butylhydroquinone industry of China by the Product under Investigation, the extent thereof and the causality between dumping and injury. According to findings of the investigations and Article 24 of the Anti-dumping Regulations, the Investigation Authority makes its preliminary ruling (See the Annex). Relevant matters are hereby announced as follows:

I. Preliminary ruling

It is preliminarily ruled by the Investigation Authority that, during the investigation period of this case, the Product under Investigation was involved in dumping and the tertiary butylhydroquinone industry of China was materially injured, and there was causality between the dumping and material injury.

II. Collection of security deposit

In accordance with Articles 28 and 29 of the Anti-dumping Regulations, the Investigation Authority decided to take a provisional anti-dumping measure by collection of security deposit. Since April 30, 2014, the import operators, when importing the Product under Investigation, shall pay corresponding security deposits to the Customs of the People’s Republic of China in light of dumping margin determined by this preliminary ruling.

The detailed description of the Product under Investigation is as follows:

Scope of investigation: Imports of tertiary butylhydroquinone originated in India

Name of the product under investigation: Tertiary Butylhydroquinone, Tert-Butylhydroquinone or TBHQ.

Molecular formula: C10H14O2

Chemical structural formula:

Physical and chemical characteristics: Tertiary butylhydroquinone is a kind of white or reddish brown crystal powder with special slight odor. It is soluble in ethanol, acetic acid, ethyl ester, isopropyl alcohol and vegetable oil and it is barely soluble in water. Its boiling point is 300℃ and the melting point is 126.5-128.5℃. It does not change color when in touch with iron and cooper ions, but will change to pink color when alkali exists.

Main usage: It is mainly used as the anti-oxidant for food and edible oil and can prevent most greases and fat from rancidity. It is used to extend the storage period of greases and edible oil. As its anti-oxidation and bacteriostasis, it can also be used as additives in pharmaceutical industry and feed industry.

The product is listed under tariff No.: 29072990 in the Customs Import and Export Tariff of the People’s Republic of China. Products other than tertiary butylhydroquinone that are included under the tariff numbers above are not covered in the range of investigation.

Rates of deposit imposed on Indian companies are as follows:

1. Camlin Fine Sciences Limited 37.6%

2. Nova International 56.9%

3. Milestone Preservatives P. Ltd. 56.9%

4. Shevalyn Pharmachem 56.9%

5. All others 37.6%

III. Methods of deposit collection

As of April 30, 2014, import operators shall, according to the dumping margin of each company as determined in this preliminary ruling, pay relevant deposits to the Customs of the People’s Republic of China when importing the Product under Investigation. The deposit shall be levied by means of ad valorem on the basis of dutiable value authorized by the Customs, and the calculation formula is: Deposit = (dutiable value authorized by the Customs x rate of deposit) x (1 + rate of import value-added tax).

IV. Comments

All interested parties may, within 10 days as of the issuance of this Announcement, submit their written comments attached with relevant evidence to the Investigation Authority, which will consider the same according to the law.

Ministry of Commerce of the People’s Republic of China

April 29, 2014

Translated by Hou Zuowei

(All information published in this website is authentic in Chinese. English is provided for reference only. )

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